Tag: Network Providers

  • Why network providers are planning tariff hike

    Why network providers are planning tariff hike

    Network providers in the country have all agreed to a cost-reflective tariff in view of present extant economic realities.

    Their resolve to increase tarrif soon was contained in a statement jointly released by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) on Thursday. The statement was co-signed by ALTON’s Chairman, Gbenga Adebayo; and ATCON’s President Tony Emoekpere.

    The telcos called upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.

    According to them, telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.

    The statement reads: “Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last (11) years, primarily due to regulatory constraints.

    “For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.

    “ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability,” the statement partly read.

    Regarding the Nigerian Communications Commission (NCC), the telcos also said regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector.

    “Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions,” the statement added.

  • 13,203 telecoms subscribers changed network providers in May – NCC

    13,203 telecoms subscribers changed network providers in May – NCC

    A total of 13,203 mobile telecommunications subscribers in Nigeria changed their network providers for others in May, the Nigerian Communications Commission (NCC) has said.

    The subscribers changed their service providers under the Mobile Number Portability (MNP).

    The commission made this known in its Incoming and Outgoing Porting Activities of Mobile Network Operators Report posted on its website.

    The NCC said that, of the 13,203 porting activities in May, 6,498 were incoming, while 6,704 were outgoing.

    It noted that 9,983 subscribers ported within the networks in April, showing an increase of 3,220 in May.

    According to the commission, 2,243 subscribers moved from Airtel to other networks in May.

    The figure indicated an increase of 1,127 over the total of 1,116 Airtel customers who dropped the network in April.

    The commission said that 1,907 subscribers moved from Globacom in May, noting that the same number left in April.

    It added that 1,584 customers of 9mobile ported to other networks in May – an increase of 116, when compared with 1,468 users who left the network in April.

    The NCC said that MTN lost 970 customers through porting in May, an increase of 68 as against 902 customers who left in April.

    On the incoming table, MTN Nigeria led by an additional 2,514 customers on its network in May.

    9mobile came second on the gainers’ list with 1,868 subscribers, while 1,343 subscribers moved to Airtel, and Globacom gained 774 customers.

    In May 2017, 39,535 subscribers ported across all networks, while a total of 33,773 subscribers ported in April, 2017.

    Of the 39,535 porting activities in May, 2017, 19,816 were incoming, while 19,719 were outgoing.

    On the outgoing porting table for May 2017, 6,567 subscribers moved from MTN to other networks, 6,540 moved from Airtel, and 4,786 moved from Globacom, while 1,826 left 9mobile (Etisalat).

    On the incoming table, 9mobile (Etisalat) led by additional 15,253 customers, Airtel came second with 2,597 subscribers, while MTN gained 1,245 subscribers and Globacom secured 721 customers.

    The NCC launched MNP in March 2013.

     

  • Data rollover consumers’ gain, network providers’ loss

    The Association of Telecommunication Companies of Nigeria (ATCON) has described the new government directive on data rollover as a demonstration of consumer protection which would, however, impact negatively service providers’ revenues.

    The ATCON President, Mr Olusola Teniola, told the News Agency of Nigeria in Lagos on Tuesday that the directive would ensure full utilisation of data purchased by telecoms consumers.

    He said that the consumers’ protection would, however, be to the detriment of network providers.

    “Currently, the annual operating levy imposed on our members is 2.5 per cent, and it is based on our net revenues.

    “This directive may have significant impact on the revenue because within those seven days consumers are not being charged for data plan, it is a loss of revenue for our members,” he said.

    On multiple taxation, Teniola said that the association was in dialogues with government for harmonisation of the Right of Way (ROW).

    Teniola said that ROW was one of the major elements that would enable ATCON members to invest in broadband infrastructure.

    “Our association is hopeful that we will have a decision made by the government as to the best way forward in terms of harmonisation of ROW.

    “On the remaining 37 taxes, we are really seeking further dialogues with the Ministry of Finance and the President’s office to ensure that our industry is not being targeted for taxes that are duplicated not only by the federal but state and local governments.

    “Taxes should not only be applied fairly but also have to be seen to be able to intensify further investment critical for investments that government and the country require,” Teniola said.

    On 30 per cent broadband penetration, the ATCON president told NAN that major stakeholders were of the view that it would no longer be achievable in 2018.

    According to him, the reason for the inability is that issuance of infracos licenses is not done timely.

    “They were only concluded by the first quarter of this year and have just been issued to infracos.

    “Secondly, we have a situation where by the multiple forex mechanism in place does not create certainty in the minds of investors.

    “That means it is much more expensive to import necessary equipment to actually create the demand needed to achieve 30 per cent broadband penetration.

    “Finally, it is very important to state that multiple taxation needs to be harmonized to allow investment to appear without it incurring taxes,’’ he said.

    Teniola told NAN that multiple taxation was a major barrier achievement of 30 per cent broadband penetration by the end of 2018.

    The Nigeria Communications Commission had directed that, with effect from June 26, telecoms consumers should be able to roll over unused data for seven days.